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Decoding the "True Cost" of a Launch
Decoding the "True Cost" of a Launch
Updated over 2 weeks ago

Launching a new product on Brand Expand can be exhilarating, but deciphering the true cost of running your campaign can feel like solving a cryptic puzzle. This guide peels back the layers of "True Cost" to ensure you understand exactly what you're doing on your next product launch.

The "true cost" isn't the whole story

The advertised "True Cost" can be found on the far right of the dynamic launch setup calculator. It is important to note that while it covers the Revenue Share Fees and any Add-Ons added, it excludes product costs. Why? Because, those costs are offset by the revenue generated from successful sales. Think of it this way – you invest in the launch to kickstart sales, and those sales, in turn, cover your product expenditure.

How to calculate the total cost of your launch

Step 1: Product cost

  • Calculated based on your ACOS/discount and removing any product listing coupons

    • Ex: A $10 product at 100% ACOS will be $10, but at 80% ACOS will be $8.

Step 2: Launch size

  • Multiply the product cost calculated in step 1 by the total number of scheduled promotions.

  • This is the total product cost of your launch; to it we must add the true cost (revenue share fees and add-ons)

Step 3: Calculate the revenue share fee

  • Revenue share is calculated by your revenue share rate (variable percentage or fixed rate, according to your subscription plan details) X product cost X total scheduled units.

    • Variable rate accounts have a minimum and maximum cost for the revenue share per unit sold that come into effect if the calculated rev-share is lower or higher.

    • Minimums and maximums are designed to protect both you the user and us.

Here are some examples:

EXAMPLE

CALCULATION BREAKDOWN

(1) Plan: Premium

Account type: Variable

Product Price: $10.00

Premium is 20%, min $3.95 / max $9.95

The 20% of $10 is $2.00, since it’s lower than the min, we charge the min instead.

(2) Plan: Free

Account type: Fixed

Product Price: $25.00

Free has a fixed rate of $6.95, so that is the revenue share we use. No need to calculate anything else.

(3) Plan: Free

Account type: Variable

Product Price: $55.0

Free is 25% rev-share, min $4.95 / max $12.95

The 25% of $55 is $13.75, since it’s higher than the max, we charge the max.

Step 4: Calculate the cost of any add-ons

We also need to look at the cost of any add-ons to include them in the total cost of the launch (if applicable).

  • Product Cost X Percentage associated with plan X total scheduled units

  • IMPORTANT: This feature is not available for Amazon launches!

For example:

Product cost: $15 (Etsy) // Subscription: Free // Launch: 100 units
15% of $15 is $2.25 per sale. Multiply that by the number of units for total fee. Total Review Request Add-on fee: $225

ADD-ON: Instant Launch Approval

  • $49 per launch for Free plans that want their launch to go live immediately through our automated system approval.

  • This fee is only charged once the launch is successfully approved and showcased to the buyer network, and is included in paid plans at no additional cost.

  • You will not be charged this fee again if you edit your launch, it is only charged one time per launch.

ADD-ON: Pay-As-You-Go Wallet

  • This add-on allows you to prefund your whole campaign (pay it in advance), if you are using a Bank or ACH Wallet.

  • If you are paying with a credit card or don't have enough funds on your ACH Wallet, you will be charged the pay-as-you-go fee when we charge your payment method.

NOTE:

These steps does not include the subscription cost for paid plans.

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